He could be living in what is called an "up front state" where tax is paid up front on either a purchase or lease. He will be able to advise better but there are states that require taxes on the full purchase price of a lease.

You're correct. MD is an "up front state" where we pay the full tax amount on purchase OR a lease.

If I understood you correctly, by my calculation your lease payment should be about $100 less ($1,734) using the BMW FS base lease MF of .00145. At $1,830, it would appear they are marking up the MF to about .00205.

I had some time to kill at the airport this morning, so take a look at the attached pdf and see if I entered in all of the information you provided correctly.

*** NOTE: I caught a bad cell reference in my sheet (cap cost reduction decreasing the taxable amount) after I posted it and the system will not let me replace it with the corrected sheet or add a follow-up post with the new spreadsheet (not sure why admins???). The net change with the correction increases the payment in each scenario by about $4. ***

Thanks for taking the time to plug in my numbers. It appears they are marking up the money factor a bit.

Thanks for taking the time to plug in my numbers. It appears they are marking up the money factor a bit.

Maybe not. If I add the tax on the residual value to the cap cost, the payment jumps to $1,825 with the base MF of .00145. Is that the way they take care of the sales tax in DC? Add the full amount to the cap cost?

Maybe not. If I add the tax on the residual value to the cap cost, the payment jumps to $1,825 with the base MF of .00145. Is that the way they take care of the sales tax in DC? Add the full amount to the cap cost?

The title will be given in MD - so yes, they add the tax of the full vehicle price up front for purchases and leases.

He could be living in what is called an "up front state" where tax is paid up front on either a purchase or lease. He will be able to advise better but there are states that require taxes on the full purchase price of a lease.

Did not know that. Really has to throw a wet blanket on all those sign and drive campaigns for VW.

No problem, happy to help ... the discrepancy would drive me crazy too! I'm anal about knowing exactly how the calculation works - I sat with a BMW finance person to build an excel spreasheet to calculate lease payments the same way BMW FS does.

I must strat by saying I'm one that trys to minimize misinformation on this forum, so I appoligize in advance. I just didn't remeber it correctly. What appears like a cap reduction is the BMW test dive credits of $1500 and a customer loyalty credit of $750.